FDIC chair ‘deeply troubled’ by WSJ report on sexual harassment, says review underway

Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg told lawmakers Tuesday he was “personally disturbed and deeply troubled” over systemic sexual harassment allegations in the agency described in a Wall Street Journal report Monday.

Current and former employees at the FDIC said the banking regulator fostered a toxic work environment rife with sexual harassment and misogyny that drove women to leave the agency.

“The FDIC is conducting a comprehensive review, including engaging an independent third party to ensure that we understand the nature of these issues and take all appropriate actions to address them,” Gruenberg said in a Senate Banking Committee hearing. 

“Let me underscore, I have no higher priority to ensure that all FDIC employees work in a safe environment where they feel valued and respected,” he continued.

Sen. Mike Rounds (R-S.D.) pressed Gruenberg on his knowledge or involvement in the allegations, which he described as “concerning.”

Gruenberg said he was not aware of the allegations before they were published.

Rounds also directly asked Gruenberg if he, personally, would be at the center of any future news reports.

“You’d really have to speak to the news organizations, Senator,” Gruenberg replied.

Rounds said he believes additional press reports including allegations about the agency are forthcoming.

In the Journal report, FDIC employees also described a heavy drinking culture at the agency, particularly at a hotel near Washington that hosts out-of-town employees for training, and on the road, where agents spend days or weeks at a time examining banks around the country.

The outlet describes various incidents of sexual harassment or improper workplace conduct, ranging from a supervisor inviting employees to a strip club, male examiners sending nude photos to their female colleagues, and various references to sex and women’s appearances.

The agency denounced the alleged conduct in a statement Monday.

“Harassment in any form is contrary to the FDIC’s values and our deep commitment to fostering a diverse and inclusive workplace,” the agency said. “We have various training, reporting, and oversight programs that endeavor to create a safe and equitable environment where all employees can feel valued and respected.”